Grant of notional annual increment due on 1st July or 1st January after superannuation for pensionary benefits – DoP Order

No.100-10/2018-Pension
Government of India
Ministry of Communications
Department of Posts
(Pension Section)

Dak Bhawan. Sansad Marg,
New Delhi 110 001.
10th January. 2019.

Office Memorandum

Sub : Grant of (notional) annual increment due on 1st July or 1st January after superannuation for calculating pensionary benefits – Regarding

The undersigned is directed to forward herewith a copy of representation dated 04-12-2018 along with its enclosures received from Shri R. Ganesan. Secretary. Department of Posts (Retd.) & President. India Posts’ Retired Officers’ Association (IPROA) requesting to consider grant of notional annual increment due on 1st July or 1st January after superannuation in case of officials retiring on 30th June or 31st December after completion of one full year service, for calculating pensionary benefits. The request has been made on the basis of an order dated 15-09-2017 passed by Hon’ble High Court of Judicature at Madras in Writ Petition No. 15732/2017 in the matter of Shri P. Ayyumperumal. wherein the High Court had directed that the petitioner shall be given one notional increment for the period of one full year’s service from the date of his last increment till the date he retired 30th June next year for the purpose of pensionary benefits. The appeal preferred by UOI by way of filing SLP Civil Dy. No. 22283/2018 challenging the High Court order was dismissed by Hon’ble Supreme Court. vide order dated 23-07-2018

2. The issue raised in the representation does not come under the purview of Department of Post. Therefore, the representation Is being forwarded to the nodal Ministry (Department of Expenditure) for their consideration and appropriate action.

Date of Birth on 1st January 1956 forced him to retire a month advance affects his 7th CPC benefits

A government servant who was born on 1st January 1956 was forced to retire on 31 st December 2015 as per the provision of CCS Rules. As a result of this he would be categorised as Pre 2016 Pensioner and he will be incurring huge financial loss due to this. He made an appeal to raise this issue at appropriate Level. JVSR Krishna writes about this…

A Govt Servant’s Appeal, who retired on 31-12-2015 which made him pre 2016 Pensioner

Extension of 7th CPC benefits to those employees having date of birth on 01/01/1956 and retired on 31/12/2015. Except 1st Jan. all others will be benefited. This will happen once in 10 years during the pay commission year.

Hence, this genuine issue may please be raised at the appropriate forum.

AS YOU ARE AWARE PRESENTLY VARIOUS MINISTRIES/DEPARTMENTS ISSUE ORDERS TO RETIRING OFFICIALS ON SUPERANNUATION, BORN ON THE 1st OF A MONTH, ON THE LAST DAY OF THE PRECEDING MONTH. ACCORDINGLY, SIMILAR ORDERS ISSUED TO ME EFFECTING FROM 31ST DECEMBER, 2015. AS A RESULT OF WHICH, I WOULD BE CATEGORIZED AS PRE-2016 PENSIONER.
IN THIS CONNECTION I BEG TO SUBMIT AS FOLLOWS:

(i) Prior to the practice/instructions/rules of retiring on superannuation of all those born on the 1st of a month on the afternoon of the last day of the preceding month, Article 14 of the Civil Service Regulation which were being followed for decades provided that an officer whose date of birth was the 1st day of a month ceased to be on duty on attaining the age of superannuation on his 61st Birthday. Besides, the AUDIT INSTRUCTIONS below FR 56 as existed then had similar provision. This rule applied to all Government servants, whether civil or military.

(ii) The other statutory Rule 5(2) of the Central Civil Service (Pension) Rule, 1972 framed under Article 309 of the Constitution of India also provided that “The day on which a Government servant retires or is retired or is discharged or is allowed to resign from service, as the case may be, shall be treated as a non-working day.

(iii) According to Rule 83(1) of the Pension Rules, 1972 framed under the Article 309 of the Constitution of India, as existed earlier also provided that pension becomes payable from the date on which Government servant ceases to be born on the establishment.

(iv) Even at present, Leave Preparatory to retirement has to be till the date one attains the age of superannuation. According to the Rules/instructions one retires on superannuation on the date of birth of the relevant year and pension is payable from that date.

(v) According to the Halsbury’s Law of England “In computing a period of time, at any date, when counted in years or months, no regard is generally paid to fractions of a day, in the sense that the period is regarded as complete although it is short to the extent of fraction of a day. Similarly, in calculating a person’s age, the day of his birth counts as a whole day; and he attains a specified age on the day next before the anniversary of his birth day.”

(vi) As the current practice/instructions/rules was discriminatory against all those born on the 1st of a month and harshly operating against them, particularly with reference to pensioners / terminal benefits.

(vii) When, those born on other than 1st, attained the age of superannuation they were deemed not to have attained the same and allowed to continue till the last of the month, whereas those born on the 1st deemed to have attained the age superannuation on a day before the last day of the preceding month. In other words the date of birth of those born on the 1st , is being changed from the 1st to the last day of the preceding month.

(viii) The applicant would not be at par with those born on the 2nd on wards in as much as they would superannuate on the last day of January, 2016 as against 3Ist December, 2015 for the applicant. As a result, there would be two separate groups- one those born between 2nd and 31st and the other those born on the 1st – resulting in discrimination against those born on the 1st.

(ix) Based on the recommendations of the 3rd CPC it was decided that the date of annual increment would be the 1st of a month irrespective of fact whether one completes one year on the last day of the month. Similarly, it was also decided that all those born on the 2nd on wards would retire on the last day of the month irrespective of the fact whether he attains the age on the age of superannuation on the 1st of the month. Based on the principle of annual increment it was also decided that enhanced pension at the age of 80 years etc. would also be granted from the 1st of a month irrespective of the fact whether one attains that age on the 30th of the month.

(X) I WOULD BE ATTAINING THE AGE OF SUPERANNUATION ON THE 31ST DECEMBER, 2015, WHICH WOULD BE A WORKING DAY FOR ME AND I WILL BE PAID PAY AND ALLOWANCES FOR THAT DAY ALSO.

(XI) I WOULD NOT START GETTING PENSION FROM THAT DATE, I.E., THE 31ST DECEMBER, 2015. PENSION WOULD START WEF 1ST OF JANUARY, 2016. AS SUCH I WOULD BECOME A PENSIONER FROM 1ST OF JANUARY, 2016.

(XII) WHILE GRANTING COMMUTATION FACTOR, FOR THE INDIVIDUAL HAVING DATE OF BIRTH FROM 2ND TO 31ST OF THE PRECEDING MONTH AND THE INDIVIDUAL HAVING DATE OF BIRTH 1ST OF NEXT MONTH ALSO HAVING SAME FIGURE IN BOTH THE ABOVE, NEXT BIRTH DAY DATE WILL BE DIFFERENT AND COMMUTATION FIGURE ALSO SHALL BE DIFFERENT.

(XIII) FR 5-A STATES “WHERE ANY MINISTRY OR DEPARTMENT OF GOVERNMENT IS OF OPINION THAT THE OPERATION OF ANY OF THESE RULES MAY CAUSE UNDUE HARDSHIP TO ANY PERSON, THAT MINISTRY OR DEPARTMENT, AS THE CASE MAY BE, MAY BY ORDER, FOR REASONS TO BE RECORDED IN WRITING, RELAX THE REQUIREMENT OF THAT RULE TO SUCH EXTENT AND SUBJECT TO SUCH CONDITIONS AS IT MAY CONSIDER NECESSARY FOR DEALING WITH THE CASE IN A JUST AND EQUITABLE MANNER”.

It is also to bring to your kind notice that I will be incurring a huge financial loss by effecting my retirement on 31st Dec, 2015, the day on which my pay & allowances are paid and treated as in service.

IN VIEW OF THE FACTS AND LEGAL POSITION MENTIONED ABOVE IT IS REQUESTED THAT ORDERS MAY KINDLY BE GET ISSUED, RETIRING ME EFFECTIVELY WITH EFFECT FROM THE 1ST JAN, 2016, ON ATTAINING THE AGE OF SUPERANNUATION ON THE 31ST DECEMBER, 2015. AS A RESULT, TREATING THE INDIVIDUAL AS POST-2016 PENSIONER.

NC JCM insists to grant of Increment for those who have completed one year on the day of superannuation

“Tamilnadu Government issued orders on granting one increment on the date of superannuation in the case of those personnel who have completed one year of service.” – NC JCM Staff Side quoted the order and demand the same for CG Employees

The Secretary(Personnel),
Department of Personnel & Training,
Ministry of Personnel, Public Grievances and Pensions,
North Block,
New Delhi-110001

Dear Sir,
Sub: Grant of increment for those who have completed one year on the day of superannuation

We solicit your kind reference to item No.14 of the 43rd Meeting of the National Council, demanding grant of one increment in the case of those persons who complete one year on the day of their superannuation. The issue was discussed several occasions, but was not agreed upon by the Official Side. The Official Side took the stand that the completion of the stipulated one year being the day on which the official retires, he cannot be granted one increment for having completed one year only the next day and for doing so, one has to be on duty. The fact that the official has completed the requisite one year for earning an increment was unfortunately glossed over. The Staff Side was also told later that the case filed by one of the officials in the Central Administrative Tribunal against denial of increment was turned by the Court. No doubt, grant of increment in a deserving case is an executive decision and no court will be able to compel the Executive to exercise their powers in a particular manner. In fact, the Government ought to have appreciated the fact that the demand is on justified ground and the technicalities should not have come in the way to deny justice.

We now send you a copy of the GO issued by the Government of Tamilnadu, granting one increment on the date of superannuation in the case of those personnel who have completed one year of service. In the light of the decision of the Government of India that the grant of increment can be resorted to even in the case of a person who has completed at least six months in order to bring in uniformity in the date of increment of all Government employees as per the recommendation of the 6th CPC, earlier stand of the Official Side is not at all tenable. Since there had been no meeting of the National Council for the past five years, this matter could not be pursued through discussions.

We request you to kindly consider the matter afresh, especially in the background of the GO. of the Government of Tamilnadu and issue orders to settle the justified demand.

Yours faithfully,

(Shiva Gopal Mishra)
Secretary(Staff Side)
NC/JCM

Encl: As above
ABSTRACT

Tamil Nadu Revised Scales of Pay Rules, .2009 – Grant of notional increment to Government Servants who retires on superannuation on the preceding day of increment due date – Orders – Issued.

ORDER:
As per the provisions under Fundamental Rules 26 (a), the annual increments of the Government Servants are regulated in four quarters viz. 15th January, 15th April, 1st July and 1st October. However, there is no provision in the Fundamental Rules to sanction annual increments in the case of the Government Servants who have rendered one full year of service and retires on superannuation on the last date of completion of one year and their increment due date falls on the next day of superannuation. As such an anomalous situation arises in the case of those Government Servants who retires on the 31st March, 30th June, 30th September and 31st December, as the case may be, inspite of the fact that they haVe completed one full year of service which are countable for increment as per Fundamental Rules 26(a), (b), (bb), (c) and (d) as the case may be, and on the date ‘of retirement.

2) The above issue was-brought to the notice of Pay Grievance Redressal Cell constituted in the Government Order second read above by several Employees Association for due rectification. The Pay Grievance Redressal Cell, among others, has recommended that “when date of increment of a Government Servant falls due on the day following superannuation on completion of one full year of service, such service may be considered for the benefit of a notional increment purely for the purpose of pensionary benefits and not for any other purpose. Such concession may be made applicable prospectively”.

3) After careful consideration, the Government have decided to accept the above recommendation of Pay Grievance Redressal Cell. Accordingly, the Government direct that a Government Servant whose increment falls due on the day following superannuation, on completion of one full year of service which are countable for increment under Fundamental Rules 26, be sanctioned with one notional increment at the rate as described under rule 6 of Tamil Nadu Revised Scales of Pay Rules, 2009, purely for the purpose of pensionery benefits and not for any other purpose. The above concession of sanction of notional increment shall take prospective effect from the date of issue of this order.

1st July of every year – ‘Increment Day’ for Central Government employees

As per the 6th Pay Commission CCS (Revised Pay) Rules 2008, provisions of Rule 10 with effect from 1.1.2006, uniform date of increment was implemented for all Central Government employees i.e. 1st July of every year. One more condition for getting increment is provided in this rule, completing six months in the same pay as on 1st of July are only eligible to be granted the annual increment. Who have not rendered six months period of service as on first of a year will not be eligible to draw increment on that day and their date of increment will fall 12 months later on the next 1st of July.

Today is the ‘Increment Day’ for all Central Government employees. If the increment day falls on Sundays or holidays, the next working day will be taken as resumption day. In case of an employee taken leave 2.7.2012, his increment benefit will be granted only from the date on which he resumes duty and not from the first of July.

There would be rare chance to occur such problems to take leave on increment day. But whereas, better to avoid to take leave on first working day of any year. Normally most in the Government organisations, promotion orders are not publishing on the date of promotion. If the promotion date falls on first January, there should be condition on assumption that the promotee should be present for the duty on that day of promotion. If not, the promotion is to be granted only from the date of resumption of duty on return from leave. According to this rule, qualifying period for earning an increment is six months on 1st July, the date of next increment will postponed to the next year.

In the light of the above situation, if the first day of any year falls on Sundays or Holidays, the Dopt clarified that the ‘Government servants who join posts on the 1st working day of the year will be treated to have completed six months of service on 1st of July of that year for the purpose of granting them annual increment on that day’.

Every Central Government employee should know the calculation of Annual or Promotion increment, one increment is equal three percent of the sum of the Pay in the Pay Band plus Grade Pay and it should be calculated and rounded off to the next multiple of ten.

Annual Increment calculation :-

An employee’s basic pay of Rs.12,030 including Grade Pay of Rs.2,800, his increment fixation will be fixed as follows…

Basic Pay including Grade Pay : Rs.12,030

3% increment for Rs.12,030 and it rounded off to the next multiple of ten : Rs. 360

His Basic Pay as fixed on 1st July : Rs.12,390

[Note that in the case of calculation of increments under the revised pay structure of 6th CPC, paise should be ignored, but any amount of a rupee or more should be rounded off to next multiple of ten.]

Until 01.01.2006, the date of implementing employee’s annual increment was fixed on the basis of his/her date of appointment or promotion option. After the 6th CPC, it was decided that 1st July of each year would be the uniform date of implementation of annual increment for all Central Government employees.

Employees who are appointed after January 1st are not eligible for that year’s annual increment on July 1. They qualify for annual increment only the next year.

The revised pay rules said that “If an employee is on leave or is availing joining time on the 1st of July, the benefit of annual increment in pay will be drawn only from the date on which he resumes duty and not from the first of July. Each year, employees who retire in the month of June are not given the annual increment of the year since they do not report to work on 1st July. Only those employees who resume duty on July 1st are eligible to receive the annual increment. Or, the day they report back to work is taken as the date for implementing the annual increment. Since there are no possibilities for the retired employees to return to work, they are not considered as qualified to receive the annual increment.

The revised pay rules states that only those who have been receiving the same basic pay continuously for 6 months are considered as qualified for annual increment. According to the another rule of qualification for increment, the person should have complete one year in service after receiving the annual increment. Therefore, despite being qualified, these employees are denied their annual increment.

There is an order that states that those who retire on July 1st should complete the retirement formalities in the month of June.

Instead of strictly looking into such technicalities, it would be a nice gesture on the part of the Government to extend the benefits of annual increment to those senior employees too who retire from service in the month of June.